DoorDash changes delivery pay policy after backlash

DoorDash announced a revised pay policy Thursday that its CEO said will provide delivery people “more money on average,” a response to backlash the company faced for a payment system that critics said essentially pocketed couriers' tips.

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In a blog post, CEO Tony Xu promised that “every dollar customers tip will be an extra dollar in their Dasher’s pocket.” That’s a change from a system—exposed last month in The New York Times—that occasionally subtracted tips from a courier’s base pay.

The base pay that DoorDash deliveries will increase as well, from $1 to between $2 and $10, depending on the “duration, distance and desirability” of the order. The company did not clarify how those factors are calculated.

“Under our new model, Dashers will earn more money on average—both from DoorDash and overall,” Xu wrote. “We know there will be greater variability in total earnings from order to order, so we are taking steps to address that to make sure that Dashers will earn more on average.”

The company said it will work with a third party to ensure couriers get the pay increase.

DoorDash—which recently acquired competitor Caviar—is the nation’s largest food-delivery company. The industry as a whole has come under fire over how delivery workers are paid and the hefty fees levied against restaurants.

Last month GrubHub announced policy changes of its own, allowing restaurants more time to dispute charges for phone calls this did not result in orders.

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